Herb Simon, the 91-year-old co-founder of Simon Property Group and majority owner of the Indiana Pacers, has sued the family of his late nephew David Simon, alleging David quietly rewrote the rules of a private real estate company in the weeks before he died — a move Herb says wiped out millions of dollars in equity held by him and other family shareholders. The lawsuit, filed in Marion Superior Court in Indiana, targets the fate of SFG Company LLC, a real estate entity Herb formed with his late brother Melvin Simon in 1995.
According to Bisnow, plaintiffs — including Herb Simon, Melvin Simon & Associates, Simon Hollywood Developers and Bank of America — are seeking compensatory and punitive damages, reimbursement of legal fees, and a court order declaring the restructuring invalid. Bank of America, acting as a plaintiff in the case, declined to comment on the pending litigation, as did attorneys representing the plaintiffs, the outlet reported.
What SFG Company LLC Was Built to Hold
SFG Company LLC held real estate interests that weren't included when Simon Property Group went public in 1993, an offering that raised nearly $1 billion and was, at the time, the largest real estate initial public offering in U.S. history, according to Wikipedia. Herb and Melvin formed the private entity in 1995 specifically to house those excluded assets.
Under the arrangement, certain members — including Herb Simon and Melvin Simon — held preferred shares carrying preferential distribution rights, per the complaint. Herb and the other entities named in the suit say those rights are exactly what the alleged restructuring stripped away.
Herb, who co-founded the original company with his brother Melvin in 1960, retired from his seat on the Simon Property Group board in February 2025 at age 90, according to Inside INdiana Business. He has kept his majority ownership of the Pacers throughout.
Talks to Sell Off the Property Fell Apart
Before the alleged restructuring, David Simon had discussed liquidating SFG Company LLC with his uncle, but he insisted on the ability to buy Herb and his family's preferred shares at heavily discounted values. Herb disagreed with that proposal, and the discussions ceased.
According to the complaint, David then sought to seize what he had been unable to obtain at the negotiating table, undertaking secret actions roughly two weeks before his death in March 2026. SFG Manager purported to dissolve SFG Company LLC in a way that would benefit David and his immediate family, stripping several equity holders of their preferential interests without notice to or consent from those affected, the suit alleges.
The Legal Claims Against David Simon's Family
The suit, reported by The Indiana Lawyer, asserts claims for breach of contract and breach of fiduciary duty against 17 defendants and nominal defendants, including David's widow, Jacqueline Simon, sued as personal representative of his estate, while Melvin Simon's daughters, Deborah Simon and Cynthia Simon-Skjodt, are named as nominal defendants. Co-plaintiffs include the Herbert Simon Revocable Trust and Bank of America, acting as trustee for Bren Simon's marital trust, and the complaint asks the court to nullify the restructuring and reinstate Melvin Simon & Associates as manager of SFG Manager LLC. That entity's control had shifted years earlier: Melvin Simon & Associates managed SFG Manager LLC until 2013, when David Simon became its sole member and manager, a role his son Eli now holds. Plaintiffs argue the original operating agreement required unanimous member consent before altering preferred equity distribution rights and barred the manager from taking unilateral actions that would render ordinary business impossible.
Eli Simon Pushes Back, Calls the Lawsuit Meritless
David Simon died at 64 on March 22, 2026, after a battle with pancreatic cancer, according to a PR Newswire announcement from Simon Property Group. His son, 38-year-old Eli Simon, was named CEO in the aftermath — Simon Property Group's own statement ties the move to March 2026, though Bisnow's account of the lawsuit places his formal elevation in May 2026. In a statement reported by Inside INdiana Business, Eli called the lawsuit a "meritless complaint" and said he intends to stay focused on running the company.
A Familiar Rift in the Simon Dynasty
This isn't the first time Simon family members have fought each other in court. Melvin Simon's 2009 death triggered a three-year battle over his roughly $2 billion estate, pitting David Simon and his siblings against stepmother Bren Simon until the case settled under seal in 2012, according to Global News. Simon Property Group itself intervened in that dispute, ultimately converting more than $940 million in estate trust units.
Whatever the outcome, the legal fight unfolds against a backdrop of corporate strength: Simon Property Group remains the largest shopping mall owner in the United States, with properties spanning 241 million square feet, and the company reported an eight-year high in national mall occupancy in February 2025, according to the Indianapolis Business Journal. Attorneys for Herb Simon and for the defendants did not respond to requests for comment, Bisnow reported.
